an assessment on aquaculture stewardship council (asc) ceritfication standard application for catfish (pangasianodon hyphopthalmus) farms in the mekong delta, vietnam

CAN THO UNIVERSITY
COLLEGE OF AQUACULTURE AND FISHERIES

AN ASSESSMENT ON AQUACULTURE
STEWARDSHIP COUNCIL (ASC) CERITFICATION
STANDARD APPLICATION FOR CATFISH
(Pangasianodon hyphopthalmus) FARMS IN THE
MEKONG DELTA, VIETNAM

NGUYEN THANH TOAN

A thesis submitted in partial fulfillment of the requirements for
the degree of Bachelor in Aquaculture

Supervisor
Dr. TRUONG HOANG MINH

Can Tho, January 2013


ACKNOWLEDGEMENTS
I wish to express my deep appreciation and sincere gratitude to:
College of fisheries and aquaculture of Can Tho University created the
useful conditions for studying.
Lecturers of Can Tho University and Auburn University, AIT University
have taught me the experience during school.
Dr. Truong Hoang Minh for his constant guidance and enthusiastically
help during the thesis conducting time.
The companies of VINH HOAN, NGOC HA, ANVIFISH, GODACO,
SOHA, as well as cooperatives Thot Not and O Mon supplied the useful data
for my thesis.

Brothers and sisters from the postgraduate grade 18 have helped
hospitably for analyzing data.
Friends from Advanced Aquaculture batch 34 and Aquaculture
Economic batch 35.
My Family and relatives encouraged and created favorable conditions for
me to complete this program.
Everyone always facilitated and enthusiastically helped me complete the
thesis.

Can Tho. Jan, 25th 2013
Author

Nguyen Thanh Toan

i


ABSTRACT
An assessment on Aquaculture Stewardship Council - ASC certification
standard application for Tra catfish (Pangasianodon hyphopthalmus) farms in
the Mekong Delta was conducted from June to December 2012 in Can Tho
city, Tien Giang, An Giang, Ben Tre, and Dong Thap provinces. Thirty
members in cooperatives of Thot Not and O Mon districts, Can Tho city and 5
companies (Vinh Hoan, Ngoc Ha, Godaco, Anvifish and Sohafood) were
interviewed.
The results showed that, ASC was a new standard, an independent not
for profit organization, established in 2009 by WWF and IDH, its version 1
was published in October 2010. The ASC compliance related to 7 most
concerned issues: legality, land and water use, waste management, genetic and
biodiversity, feed management, drugs and chemicals and social responsibility

that promoted the sustainable development for Tra cafish culture in the future.
Average farm size of farmers, cooperatives and companies were 1.41±1.52 ha;
0.95±0.56 ha and 14.10±5.06 ha, respectively. Fish farmers and cooperatives were
limited size, technique and finance. Moreover, ASC had specific criteria that were
hard to be complied and high certification cost for farmers and cooperatives
while they had small scales, ASC was not known well to individual farmers
and member of cooperatives because of not much information available.
Return rate of the ASC model of companies was 8.82±5.76%, having
significantly financial efficiency meanwhile it was -7.88±6.68% and 5.20±9.23% in farmers and cooperatives, respectively. As a result, ASC
application gave higher price and economic efficiency. Among 5 companies
interviewed and registered towards ASC certification, Vinh Hoan, Ngoc Ha
and Anvifish companies were certified ASC in 2012. The application of ASC
standard was important for building up the brand name of Vietnamese Tra
catfish industry and meeting the demand of international customers as well as
supporting sustainable Tra catfish production of the Mekong Delta in the
future.
Key words: ASC, certification, Mekong Delta, Tra catfish, standard

ii


CONTENTS
Page

ACKNOWLEDGEMENTS ................................................................................ i
ABSTRACT ...................................................................................................... ii
CONTENTS ..................................................................................................... iii
LIST OF TABLE .............................................................................................. iv
LIST OF FIGURE ............................................................................................. v
LIST OF ABBRIVIATION .............................................................................. vi

CHAPTER 1: INTRODUCTION .................................................................. 1
1.1 Background .................................................................................................. 1
1.2 Objectives .................................................................................................... 2
CHAPTER 2: LITERATURE REVIEWS .................................................... 3
2.1 Review on Status of Tra catfish farming in Vietnam .................................. 3
2.2 Current standards and practices for Tra catfish farming in Mekong Delta . 4
2.2.1 BMP ............................................................................................................ 4
2.2.2 GAP............................................................................................................. 4
2.2.3 BAP ............................................................................................................. 5
2.2.4 Organic Tra catfish farming ........................................................................ 7
2.2.5 Viet GAP ..................................................................................................... 7

CHAPTER 3: METHODS AND MATERIALS ........................................... 9
3.1 Study area .................................................................................................... 9
3.2 Data collection ............................................................................................. 9
3.2.1 Secondary data ............................................................................................ 9
3.2.2 Primary data ................................................................................................ 9
3.2.3 Sample size ............................................................................................... 10
3.2.4 The list of main variables in questionnaire ............................................... 10

CHAPTER 4: RESULTS AND DISCUSSIONS ......................................... 12
4.1 The overview of the standard certification of ASC in Mekong Delta ................. 12
4.2 The general information ....................................................................................... 12

4.3 The procedures of the standard certification of ASC ................................ 13
4.4 The technical status of Pangasius farms ................................................... 14
4.4.1 Farming area ............................................................................................. 14
4.4.2 The information of Pangasius Seed .......................................................... 15
4.4.3 The water management in pond ................................................................ 16
4.4.4 The culturing time, harvest, yield, survival rate ....................................... 17

4.5 The financial efficiency of farmer, cooperative and company .................. 18
4.6 The perception of Pangasius farmer, cooperative and company .............. 22
4.7 The assessment of the ASC criteria application of farms ......................... 23
4.8 Advantages and disadvantages of ASC standard application ................... 24
4.8.1 Advantages ................................................................................................ 24
4.8.2 Disadvantages ........................................................................................... 25

Chapter 5: CONCLUSIONS AND RECOMMENDATIONS ................... 27
5.1 Conclusions ............................................................................................. 27
5.2 Recommendations ................................................................................... 27
REFERENCES ................................................................................................ 28
APPENDIX

iii


LIST OF TABLES

Table 3.1: Number of surveyed farms ...................................................... 10
Table 3.2: The complex variables and single variables in the questionnaire
…………………………………………………………...……….........11

Table 4.1: General information of Pangasius farms (mean±std) ............. 13
Table 4.2: Logo fee ................................................................................... 14
Table 4.3: The aquaculture area of 3 different groups ............................. 15
Table 4.4: The information of Pangasius Seed ........................................ 16
Table 4.5: The water exchange ................................................................ 17
Table 4.6: The culturing time, harvest, yield, survival rate ...................... 18
Table 4.7: The major economic indicators ............................................... 19

Table 4.8: Perceptions of Pangasius farmer, cooperative and company . 23
Table 4.9: The analysis of advantages and disadvantages of ASC standard
Application……………………………………………………….26

iv


LIST OF FIGURES
Figure 3.1: Map of the study areas .................................................................. 10
Figure 4.1: Procedures of the standard certification of ASC .......................... 13
Figure 4.2: Logo .............................................................................................. 14
Figure 4.3: Rate of return (%) and Benefit – cost rate (time) ......................... 20
Figure 4.4: Structures of production cost of Farmer, Cooperative and
Company ........................................................................................... 21

v


LIST OF ABBRIVIATION
ACC
ASC
ASEAN
BMP

Aquaculture Certification Council
Aquaculture Stewardship Council
Association of Southeast Asian Nations
Best Aquaculture Practices
Better management practices

CAB

Conformity Assessment Body

CoC
CUVN
DARD
EU
FAO
FIS
GAA
GAP
GMOs
Ha
HACCP
IDH
Ind
IQF
ISO
MPEDA
NACA
NAFIQAVED

Code of Conduct for responsible Aquaculture
Control Union Vietnam
Department of Agriculture and Rural Development
European Union
Food and Agriculture Organization
Fish Information and Services
Global Aquaculture Alliance

Good Aquaculture Practices
Genetically modified Objectives
Hectare
Hazard Analysis and Critical Control Points
Dutch Sustainable Trade Initiative
individual
Individual Quick Frozen
International Organization for Standardization
The Marine Products Export Development Authority
The Network of Aquaculture Centers in Asia-Pacific
National Fisheries Quality Assurance and Veterinary
Directorate
Non-Government Organization
Pangasius Aquaculture Dialogue
Social and Accountability
Safe quality food
Strength, Weakness, Opportunity, Threat
Total ammonia nitrogen
The Vietnam Association of Seafood Exporters and
Producers
Vietnam Dong
World Trade Organization
World Wild Fund
Yes/N

BAP

NGO
PAD
SA

SQF
SWOT
TAN
VASEP
VND
WTO
WWF
Y/N

vi


CHAPTER 1
INTRODUCTION
1.1 Background
The stripped catfish is among the most popularly cultured species in the
Mekong Delta together with high production and foreign currency.
Vietnamese Pangasius export in 2010 reached US$1.427 billion; the farming
area was 5,400 ha with over 1.1 million tones in production. In 2011, Vietnam
reached US$1.8 billion of Pangasius export higher than 2010, rising 26.5
percent over last year .The farming area was 5,140 ha that is lower than 2010,
but the production was 1.1 million tones. Pangasius has been being exported
to 80 countries in the world (EU, US, Spain Mexico, Australia, China and
Germany…) (). In 2012, Vietnamese farming area
went down 5,300 ha and produced 865,000 tones of Pangasius. The
production was lower than the previous years because of low price and high
cost with the value of 1.37 billion dollars ().
Stocking density in pond culture is around 40-60 ind/m2. Yields reach
250-300 tones/ha/crop, exceptionally reaching 500 tones/ha/crop in ponds
(FAO, 2012). The higher stocking density of tra catfish is applied, the more

disease and negative environmental effects happen. As a result, farmers have
to face the problems relating to heavily environmental pollution, disease
outbreak, low seed quality… because they have usually used chemicals and
drugs to treat these. Such actions will reduce the importers‟ and customers‟
reliability.
Together with exporting the Tra catfish products into hard imported
countries in the world, some certification standards of Tra catfish farming and
processing are created to ensure food hygiene safety and traceability for
imported foodstuff of animal origin such as: Global GAP and ASC and CoC
(applying for processor),… in the Mekong Delta. The rapid growth of Tra
catfish farming has raised concerns on the environmental and social aspects of
this industry.
In Vietnam, the Mekong Delta is the key aquaculture area; the farming
model is towards sustainability by certification standards, such as: ASC and
Global GAP. That is the general trend of Pangasius farming in the Mekong
Delta. Especially, when WWF and VASEP agreed to conduct the ASC
certification in Vietnam in 2010, WWF as a partner of ASC initiated the
meeting coordinate Pangasius Aquaculture Dialogue (PAD) to build the
1


standards which are measurable and based on the capacity to limit the negative
impacts from the movement of catfish farming. The requirement of ASC
standard is quite high and people wonder if farmers can meet the need of all
criteria of this standard.Thus, “An assessment on ASC certification standard
application for tra catfish (Pangasianodon hyphopthalmus) farms in the
Mekong Delta” was conducted to figure out somewhat has been being cared .
1.2 Objectives
General objectives:
The research is conducted to review on the criteria of ASC Certification

and import markets of ASC certified catfish and to evaluate catfish farmers‟
perception and application for ASC Certification to identify the advantages
and disadvantages of catfish farmers in application to ASC Certification.
Specific objectives:
i. To describe the criteria of ASC Certification Standards for farming;
ii. To identify technical and financial efficiency of fish farming;
iii. To evaluate the applicability of ASC standards of Pangasius farming in
the Mekong Delta;
iv. To address advantages and disadvantages of ASC standard application
v. To propose some possible solutions for the applicability ASC standards
for Pangasius farming in Can Tho.

2


CHAPTER 2
LITERATURE REVIEWS
2.1 Review on Status of Tra catfish farming in Vietnam
From 2000, Pangasius became an important object cultured in Vietnam
.According to VASEP in 2008, exports of fish products from Vietnam reached
USD 1.45 billion. Production and export of Pangasius in 2011 reached
impressive results if compared with the efficient production of agricultural
commodities such as shrimp, rice, subsidiary crops,… The output of tra catfish
was harvested nearly 1.2 million tones; export reached more than USD 1.8
billion, up 26.5% compared to 2010. Vietnamese catfish were present in 135
markets worldwide, of which the exports to the EU, the key market for
exporting of tra catfish, accounted for 29.1%; The United States accounted for
18.4% of the proportion of fish exports in 2011 reached 29.5% of total
aquaculture products exported, maintaining second position after shrimp
(). Vietnam had 401 seafood processing plants of

which 301 factories export to the European standards, 30 are certified for
exporting to Russia and 16 are accepted as ISO certified factories in 2012.
The Pangasius export developed very much form 2002 – 2003 and that
got highest in 2008 (De Silva SS and Phuong, N. T., 2011). In 10 years from
1998 – 2007, the total area was 6,000 ha, gained six times, annual production
of Pangasius was from 7,000 to over 1 million tones that went up 45 times
over the period. The export value increased 50 times from 19.7 million to
979.036 million dollars. A total of about 0.2 million people in the Mekong
Delta was concerned with the Pangasius farming (Sinh and Hien, 2008). The
total production and the fillet production were 1.2 metric tones and US$ 1.45
billion, respectively (Dung, 2008). According to Sinh (2011), in recent years,
the tra catfish farming has developed strongly together with the market
expansion. In 2009, the Pangasius was exported to 80 countries.
The rapid growth of Tra catfish was linked to the changes in pond culture
system from extensive to intensive model during 2002 – 2010, the small farms
dominated in periods of pond area, most were farmers controlled, owned and
rented, 81.9% had the area less than 1 ha (De Silva SS and Phuong, N. T.,
2011). However, the Pangasius farming and selling had difficulties of unstable
price, high production cost and fluctuated market,… From these difficulties,
farmers established the linkages from themselves to other farmers in
cooperatives called horizontal linkage and to the enterprises called vertical
linkage. According to Oanh and Minh (2011), the non-linked models gave the
3


highest failure rate compared to the linked models. Therefore, large scales
were more popular and can meet the demand of globalized market. Vienamese
catfish industry was willing to manage the difficulties and pressures.
Beside the above mentioned development, there are still a lot of concerns
as unstable and risky potentials in Pangasius farming relating to environment

pollution and the usage of drugs and chemicals causing bad effects on the
communities surrounding the culture areas. Therefore, more certification
standards are created to manage these issues in order to ensure the sustainable
development of tra catfish farming and meet the requirement of importing
markets in the world. In particular, consumers in developed countries pay
more and more attention to the quality of the product. Many technical barriers
have been erected on drug residue. As a result, farms in the Mekong Delta
have been complying the principles of international certification standards:
BMP, GAP, BAP, organic certification and Viet Gap,… especially ASC, to
improve the hygiene food, clear traceability and environmental-friendly
product,…
2.2 Current standards and practices for Tra catfish farming in Mekong
Delta
2.2.1 BMP
Up to now, the Mekong Delta has had no farms certified BMP, which
only exists in the documents of CARD and SUMA projects. The CARD is
supported by Australia government and it contributes on building the
BMP/GAP model in agriculture of Vietnam. Many leaflets and booklets for
applying BMP to shrimp and Tra catfish farming in the Mekong Delta are
published. BMP is a set of guidelines on the management, not the standard.
BMP is easy to apply and does not increase the cost. BMP includes simple
problems that are community responsibility, environmental protection, food
hygiene and safety; and traceability. In 2005, NAFIQAVED switched BMP
into GAP. Not only a single BMP farmer but also the team through the
formation of groups associations can apply to help them improve productivity
and reduce disease and increase profits. BMP was suitable with small-scale
farms, limited resources of financial investment, but effective management
and solidarity in a group were hard problems (Dung and Don Griffiths, 2009).
2.2.2 GAP
GAP is a set of codes of practice based on the most basic requirements of

the Code of conduct responsible fishing - CoC - (Article 9 of the CoC of the
FAO-1995) to develop sustainable aquaculture including disease control,
4


environmental protection, food safety and improve economic efficiency for the
application of GAP (MOFI, 2006).
Global GAP was proposed by the EU retailers in 1997 (formerly known as
EUREPG.A.P) and applied in a voluntary certification for agricultural products
worldwide. The activities of GAP were to control of the inputs such as: seed,
water, feed, chemicals, veterinary medicines, the health of fish,… to reduce
stress, disease, antibiotic residue, toxicants and harmful bacteria. Many GAP
standards were published in the world such as the Global G.A.P (Europe); GAP
(Southeast of ASIA), Viet GAP (Vietnam), etc. However, Global GAP was
popular in the world (Dung and Griffiths., 2009). If the products were obtained
Global G.A.P certificate, they were often automatically accepted by other
markets, because Europe was the market with the most stringent requirements in
response to the customers‟ benefits as well as the customers‟ demands.
Global G.A.P passed 4 versions. Version 4 of Global G.A.P, which
came into effect in early 2012, was a set of standards for safe agriculture
products, assuring requirements in food safety and hygiene (HACCP…),
environment (ISO 14001), social responsibility (SA 8000), and good health of
the plants and animals. Therefore, Global G.A.P was mentioned as “four in
one” standards.
Forty five aquaculture companies in Vietnam were certified
internationally in July 2011 after being awarded the Global GAP certificate or
Global Good Agricultural Practice (Dung, H.N., 2011). The certificate gave
them a lot of benefits: customers‟ reliability, improved operation efficiency
and competitiveness, constant renovation and minimized inspection carried
out by the second party... Export price of Global G.A.P certified agro-products

was about 20 percent higher than that of non-certified products in some
markets. However, To follow such standards, the cost of production would be
20% higher and small households were hard to conduct. Therefore, very few
farmers believed that the increased interest can offset part of the increased cost
(Dung and Griffiths., 2009).
2.2.3 BAP
BAP was a set of codes of practice based on the most basic
requirements of environmental and social responsibility, animal welfare, food
safety and traceability; it was a voluntary certification program for aquaculture
facilities (GAA, 2007) the change of the consumer awareness and the rules of
standards of imported countries encouraged producing the safety products,
social and environmental responsibility and long-term sustainability in the
5


aquaculture industry. The BAP program outlines standards for each type of
facility, from hatchery and feed mill to farm and processing plant. BAP
currently certifies the farms and hatcheries of salmon, tilapia, channel catfish
and Pangasius included in seafood processing plants and feed mills
(). Each BAP certification has the valid for 1 year.
BAP was developed by GAA and was implemented by ACC. GAA was
established in 1997 which was the non-profit NGO developing the Best
Aquaculture Practices certification standards and encouraged the use of
responsible aquaculture practices. ACC was established in 2002 to certify for
aquatic plants by the application of standards BAP by GAA construction
encourages the use of responsible aquaculture practices. From 2003, ACC
began implementation of BAP certification for Tra catfish, shrimp, tilapia,
channel catfish in Ecuador, Bangladesh, Malaysia, Indonesia, and Thailand ….
BAP standard defined 4 main criteria which ensured food safety, social
responsibility, environmental protection and Traceability. The BAP

certification for Pangasius consisted of 14 standards: 3 community standards,
8 environment standards and 3 food safety standards as right property and
regulatory compliance, community relations, worker safety and employee
relations, wetland conservation and biodiversity protection, effluent
management, sludge management, soil land and water conservation, fishmeal
and fish oil management, control escapes,… BAP was known to be strict
standards on effluent. The value of phosphorous and TAN are concerned so
much at the fish processing plants (ACC, 2006). In August 2010, the BAP
standard for Tra catfish was built to standardize fish products labeled BAP
logo and sold in the US market, GAA also worked to improve production and
marketing efficiencies, and promote effective, coordinated regulatory and
Trade policies which required the suppliers certified at least 2-star BAP
(BAP**) meaning the products came from certified farms and processing
plants, 3-star BAP (BAP***) was similar to 2-star BAP but there was one
more BAP certification for hatchery. The certification costs were high that was
suited to the large scale company based farms.
From
the
statistical
results
on
ACC„s
website:
www.aquaculturecertification.org updated in March 2012, BAP certification
addressed 324 processing plants, 127 farms and 30 hatcheries of 3 main
species: catfish, shrimp and tilapia. According to Xuyen and Minh (2010),
BAP certification had mainly certified for ASIAN countries (77.2%), a
hundred percent of BAP certification for catfish were been certified for US
companies, companies in shrimp production and processing plants, was
6

accounted for 73.55%, certified tilapia of china accounted for 66.7% of the
certified tilapia total. The movement for BAP certification worldwide is
growing for processing plants, farm and seed production increasingly to assert
their prestige in the eye of customers The director of BAP certification
program, William More, said BAP was expected more than 30,000 tons of fish
from the farm to be certified at end of July 2012 in Vietnam (VASEP, 2012).
2.2.4 Organic Tra catfish farming
Organic agriculture was a holistic production management system which
promotes, enhances ecosystem health and reuses waste and utilizes renewable
resources, including biological cycles and soil biological activity. Organic
agriculture was based on minimizing the use of external inputs, avoiding the use
of synthetic fertilizers and pesticides, pollution of air, soil and water. Organic
food handlers, processors and retailers adhere to standards to maintain the
integrity of organic agriculture products. The largest market for this product is
US (26.5 millions USD), EU, Japan (VASEP, 2012). Organic aquaculture would
improve the value of products because consumers are willing to pay more money
to get safe products (Trieu, T., 2004). In Vietnam, organic tra catfish production
got up 100 tons in 2004. However, this had difficulties due to lack of capital and
technology, bad water and diseases, they result low yield, and imported markets
have not been expanded yet, mainly exported to Europe and the US.
2.2.5 Viet GAP
According to this general trend, in Vietnam, the Ministry of Agriculture
and Rural Development - MARD issued the Code of good aquaculture
practice in Vietnam (Viet that the requirements of food safety, disease
outbreak limitation, environment protection, social responsibility and
traceability of products with a focus on controlling process of inputs.
Viet GAP had only 68 criteria, built in accordance with the production
conditions in Vietnam. It was much simpler than certification systems (Global

GAP, BAP, ASC,…) with more than 100 criteria. This standard also aimed to
provide opportunities for small and medium-sized farms entering the market,
accessing to services; raising awareness of the production of goods, product
certification, responding the needs of the market; improving the quality of
aquaculture products without increasing the cost of production, and becoming
the cornerstone of the system of voluntary aquaculture certification, and taking
advantage of the resources. However, up to now, the Viet GAP standard was
not recognized by the international market that Viet GAP was satisfactory
standards of food safety ().
7


The transition from non-standardized culture to Viet GAP standardized
culture for individual farmer was not easy, because farms did not built
sediment settling ponds, and waste treatment ponds. As the result, building
these ponds followed by Viet GAP standard was very expensive. Therefore,
when Viet GAP standard was enacted, many businesses and households did
not have sufficient funds to renovate farms in new directions, so the
application of this standard was still difficult and not many people responded
().

8


CHAPTER 3
METHODS AND MATERIALS
3.1 Study area
This study was implemented from 6-11/2012 in Can Tho city (O Mon and
Thot Not districts), Tien Giang, An Giang, Ben Tre, and Dong Thap
Provinces.

3.2 Data collection
3.2.1 Secondary data
Secondary data were collected from reports, researches, Departments of
Agriculture and Rural Development-DARD in above provinces , newspapers,
magazines and relating websites.
3.2.2 Primary data
Data were collected through interviewing randomly: (1) 30 individual
Pangasius households in Thot Not and O Mon districts; (2) 30 members in 2
Thot Not and O Mon Cooperatives; (3) key persons in 5 Pangasius
companies: ANVIFISH, Vinh Hoan, GODACO, SOHA, NGOC HA located in
An Giang, Dong Thap, Ben Tre, Can Tho, Tien Giang. Questionnaires were
used to pre-test before carrying out research implementation.
Study
area
Study
area

9


Study
area

Study
area

Study
area

Study

area

Study
area

Figure 3.1: Map of the study areas
(Source from: )

3.2.3 Sample size
The number of samples included 30 individual Pangasius households, 30
members in 2 cooperatives and 5 Pangasius producers from Can Tho, Ben
Tre, Tien Giang, An Giang and Dong Thap provinces (Table 3.1)
Table 3.1: Number of surveyed farms
Location
Thot Not (Can Tho)

Farmers
16

Cooperative
15

Company

O Mon (Can Tho)
Tien Giang
Ben Tre
An Giang
Dong Thap
Total

14

15

30

30

1
1
1
1
1
5

(Farmers: individual farmer Cooperative: members of cooperative. Company: farms
of company)

3.2.4 The list of main variables in questionnaire
The main variables are technical and financial information relating to
ASC standards shown in Table 3.2.

10


Table 3.2: The complex variables and single variables in the questionnaire
Complex variable
General information

Technical information

Finance

Single variable
Name, age, labor in family, rented labor,
experience, technical sources, income of family,…
Stocking density, feed type, seed size, water
exchange rate, water frequency, disease, harvested
fish size, mud containing place, water supplying
sources, total area, water surface area, production,
yield and water level,….
Cost of production, revenue, profit, cost of seed,
drugs and chemicals cost, feed cost, pond
preparation cost and interest rate,…

Variable related to ASC:
 Legal compliance
 Land and water use
 Reduce bad impact to
land and water resources
 Reducing impact to
biodiversity
 Feed control
 fish heath, drugs and
chemicals management
 Social responsibility

Culturing license permit and registration,
GPS location, evidence of mud discharge

TN and TP in water at outlet and inlet, mud
discharge places
Evidences of endangerd species in culture area,
escape of catfish in the river
ISEAL certified feed, FCR
Banned drugs usage
Labor contract, age of labor

3.3 Data analysis
The data were checked, inputted and analyzed by using Microsoft Excel
to input data and then SPSS (version 16.0) was used data. Descriptive statistic
method with analysis of variance (ANOVA) were used with Significant level
(α = 5%).
Descriptive statistic helped provide the size of samples, average, standard
deviation,... of technical and financial variables.
Comparative statistic was applied to compare the data mean value of
yield, cost, profit,… and evaluate the efficiency and the differences of 3 listed
models.

11


CHAPTER 4
RESULTS AND DISCUSSIONS
4.1 The overview of the standard certification of ASC in Mekong Delta
In 2007, ASC was adopted. As a result, the documents of ASC was
developed by the PAD coordinator and published by WWF. Such documents
are published in the world in 2011 and it can be supposed that ASC will be a
new certification standard for the sustainable development of tra catfish. The
ASC certification is applied for Tra/Basa catfish, tilapia, abalone, cobia, fresh

trout, salmon, seriola, shrimp in Vietnam, Indonesia, Equador, Honduras,
Malaysia, Costa Rica…. However, the mainly certified species are tra catfish
and tilapia ().
There were 8 Vietnamese Pangasius producers certified ASC in 2012,
including Vinh Hoan, Hung Vuong, NTACO, Hoang Long Vinh Quang, Ngoc
Ha, Anvifish, Bien Dong (). The catfish production of
these companies was estimated 10% of total Pangasius production of
Vietnam. Moreover, 20 other businesses are implementing processes and
procedures to achieve sustainable production certification standards. Towards
2015, Vietnam has 50% of Pangasius production will be certified ASC. With
a new certificate, the Vietnamese catfish industry will have competitive
advantages and market share in key and potential markets, especially in the
time of importers and consumers are very interested in the quality and value
products. However, other enterprises do not want to move forwards to ASC
Certification because they think that the market for ASC is small based on
countries of Europe. Current ASC certification is only known in Europe, but
other areas are unknown to ASC, especially the US market. So WWF and
other relevant organizations should have extensive promotions for Vietnamese
catfish products certified ASC. 30 catfish production companies in Vietnam
has been getting certification in the near future ().
4.2 The general information
Average household sizes of Pangasius farmers and members of
cooperatives were 4.4±1.38 persons, and 4.13±1.48 persons, respectively.
Average key labour involving in farming of farmers and Cooperatives are
2.87±0.90 persons and 2.4±1.10, respectively. Number of hired labour in
companies varied from 20 to 25 persons per farm 2.63±0.87 (labours/ha) more
than that in farmers‟ farms 1.31±1.34 (labour/ha) and cooperatives‟ farms
2.42±2.19 (labours/ha). The total culture areas were not significantly different
12

between farmers and cooperatives, 1.41±1.52 ha and 0.94±0.56 ha, respectively
but there was significant difference between those and companies, i.e.
14.1±5.06 ha (P<0.05). The farming experience of 3 groups similar, i.e. 7.608.73 years). (Table 4.1)
Table 4.1: General information of Pangasius farms (mean±std)
Items
Farmer
Cooperative
Company
a
a
Household size (people)
4.4±1.38
4.13±1.48
Key members involved in farm
(people)
2.87±0.90a
2.4±1.10a
a
a
Hired labor (persons/ha)
1.31±1.34
2.42±2.19
2.63±0.87a
Farming experience (years)
8.23±3.51a
8.73±4.05a
7.60±4.28a
Total area (ha)
1.41±1.52a

0.95±0.56a
14.1±5.06b
(Values in the same row with the different letters are significant difference (p<0.05))

4.3 The procedures of the standard certification of ASC
The certification process was conducted by the Conformity Assessment
Body – CAB as well as the independent third party. The farms would rent a
CAB accredited by Accreditation Services International – ASI. The ASC logo
products labeled only was certified by CAB being recognized by ASI.
Register
to CUVN

Monitoring
assessment

Post to ASC
website

Posting primary
report on website

Recertification

Certification
decision

Assessment

Feed
back

Comment of
stake holder

Figure 4.1: The procedures of the standard certification of ASC
(Sourced from: Workshop of “Experience on ASC application to Pangasius farming
in Vietnam, 2013)

The total average cost for certification per farm was about USD 20,000
but Pangasius producers (have Trader/Buyers) just paid USD 10,000 (50%)
and 40% for producers (have not yet Traders) because the ASC Accelerator (
Netherlands Development Organization - SNV) has co-funded as well as
13


technical support for producers. The validity of ASC certification is 1 year.
The total amount money invoiced is net of allowances for trade discounts and
returns for which the Licensee has issued a credit note; and sales and excise
taxes (including VAT, if any), subject in all cases to the same being separately
charged on customer invoices (Jose R. Villalon., 2012)

Figure 4.2: The logo of ASC
(Sourced from: )

Table 4.2: Logo fee (Revised from the table of Jose R. Villalon., 2012)

Sales of MSC-labelled
products

Consumner facing

(Annual Fee + Volume)

Non - consumer
facing

0 - 200,000 USD

250 USD + 0.5 % of sales

250 USD

200,001 - 500,000 USD

1000 USD + 0.5 % of sales

1000 USD

>500,000 USD

2000 USD + 0.5 % of sales

2000 USD

4.4 The technical status of Pangasius farms
4.4.1 Farming area
The average water surface farm areas were significantly different
between 3 groups: cooperatives of 0.65 ha, farmers of 1.2 ha and companies of
10.5 ha (P<0.05), accounted 68-85% of total area. The depth was not
significant different among 3 groups (Table 4.3). The result was similar to the
report of Sena S. De Silva and Phuong (2011), i.e. 3.5-4.5m deep. According

to Hien (2010), the pond area and water depth were 1.0ha/household and 3.7
m, respectively.
One of the objectives of catfish culture based on international standards
is to maintain and promote the protection of the environment. Mud storage
pond is an important criterion of ASC standard. Surveyed results showed that
most farms of 90% farmers and 66.67% cooperatives are designed simply and
14


negligently without water storage and settling area while 100% companies do
this (0.99 ha of mud containing area and 0.41 ha of settling pond area). The
mud containing area was accounted 0.14%, 2.11% and 7.02% of total area of
farmers, cooperatives and companies. Therefore, the mud was discharged
freely into rivers, for farmers with 76.67%, cooperatives with 50%, but 0% of
companies. This will cause the disease transmission between farms and water
pollution for local community. The first reason for that was the area of farmers
is small, so they take all areas to culture fish to increase their profit instead of
constructing reservoirs. The second one is their awareness of environment
protection and social responsibility is low. The sludge discharge is a usual and
normal activity of farmers for a long time. It was hard to change their
knowledge to follow the ASC standard. However, with companies, there were
regulations of environment protection that they have to follow strictly.
Table 4.3: The aquaculture area of 3 different groups
Items
1. Total area (ha)

Farmer

Cooperative

Company

1.41±1.52a

0.95±0.57a

14.10±5.06b

2. Water surface area (ha)
1.2±1.36a
0.65±0.44a
10.5±3.66b
3. Sediment settle pond (ha)
0.002±0.007a
0.02±0.11a
0.99±0.34b
4. Water level (m)
3.38±0.58a
4.17±0.49b
3.99±0.22ab
5. Sedimentation pond area
0.41±0.24b
6. Places for mud storage (%)
- Reservoir
10
33.33
100
- River
76.67
50

0
- Pond
13.33
0
40
- For other farms
0
16.67
60
(Values in the same row with the different letters are significant difference (p<0.05))

4.4.2 The information of Pangasius Seed
Seed buying rate in the provinces was 50% of farmers and 70% of
cooperatives and 20% of companies because the price of fingerlings in the
provinces was cheaper and seed were transported fast to limit mortality rate.
However, most seed sources of farmers and cooperatives were from nonstandardized hatcheries with 100% and 83% respectively. Only 17% of
cooperatives used the ones from standardized hatcheries because of high
survival rate and adoption of processing plants. 100% companies used
15


standardized seed, and 60% companies had closed chain from hatchery to
factory to ensure their products had clear traceability that was critical
requirement of ASC standard and hard markets. The standardized hatcheries
might supply and ensure enough evidences required by ASC standard like
resistance residue, seed traceability, no use of wild seed… Most of farmers did
not acknowledge of seed role in production. 96.67% of farmers and 33% of
cooperatives did not test seed for diseases. This number was different from
companies with 100% did it.
The average density of 45-58.23 ind/m2 was not significantly different

(P>0.05). The seed size was 32-74.17 ind/kg, which was significantly
different (P<0.05). Density result was lower than research of Hien (2008),
average density was 47.2 ind/m2 in freshwater, that was suitable with Sinh and
Hien (2008), density of 45-60 ind/m2 and fingerlings of 1.2-2 cm height (the
weight of 7-33g/ind) was suited. According to the ASC standard, the request
was to reduce the density at 38 kg/m2 to limit the disease outbreak and reduce
water pollution. Density of farmers and companies can apply for ASC
standard but cooperatives can not, the density depends on seed size, seed
quality and water depth.
Table 4.4: the information of Pangasius Seed
Items

Farmer

Cooperative

Company

1. Seed bought from (%)
- In the province
50
70
20
- Outside the province
50
30
20
- Produced by themselves
0
0

60
2. Seed sources (%)
- Normal hatchery
100
83
0
- Standard hatchery
0
17
100
3. Tested disease (%)
- Tested
3.33
67
100
- Not Tested
96.67
33
0
2
a
a
4. Density (ind/m /crop)
47.25±13.97
58.23±18.39
45±13.23a
5. Seed size (ind/kg)
43.17±22.84a
74.17±44.49b
32±4.47a

(Values in the same row with the different letters are significant difference (p<0.05))

4.4.3 The water management in pond
A hundred percent of farmers and cooperative took water directly from
the river into the pond, but 100% companies took water through settling pond.
These showed that both farmers and cooperative were not aware of the feed
and water management issues and did not design proper system because of
16


small scale. These actions were the causes of the disease transmission and
increased water pollution. Frequency was 1.17±0.38 day/time, 1.53±0.78
day/time and 2.60±0.89 day/time for farmers, cooperative and company
respectively. According to Hien (2008) the frequency was 1.6 day/time, Sinh
and Hien (2008), which was 2-3 day/time to get good results. According to
ASC standard the water volume used to produce 1 ton of fish is 5000m3/ton of
fish that means each 1 ha water surface area with 4m in depth produces 350
tones of fish and exchanges water 30%/2day/time in 7 months. The water
changing rate was similar, ranged from 30-32.67%, the higher frequency
addressed that the more water pollution and the higher density when compared
to previous researches.
Table 4.5: The water exchange
Items
Farmer
Cooperative
Company
1. Water resource (%)
- Direct from river/channel
100
100

0
- Through settling ponds
0
0
100
a
a
2. Frequency (day/ time)
1.17±0.38
1.53±0.78
2.60±0.89b
3. The rate of water change (%/time) 32.67±4.69a
32.33±4.69a
30±0.0b
(Values in the same row with the different letters are significant difference (p<0.05))

4.4.4 The culturing time, harvest, yield, survival rate
The culturing time average was 7.7 month/crop which was higher than
the research of Oanh and Minh (2011), culture time was 7 month. The culture
time was long or short, based on seed size, disease and price. The survival rate
ranged 63.57-84.11%. According to Oanh and Minh (2011), the survival rate
was 75.7%, and the survival rate of Hien (2008) was 76.2%. In this research,
the survival rate was 72.79% that was lower than the previous research due to
disease outbreak, water pollution and poor seed quality. Almost 100% of 3
groups used the pellet feed in culture with 1.58-1.69 of FCR, the result was
suited to result of Dung (2008), FCR of pellet feed was 1.5-1.8 and was
equivalent to research of Oanh and Minh (2011), FCR was 1.62. To comply
ASC standards, the morality rate and FCR should be less than 20% and 1.58,
respectively, ASC application for company was higher than other groups.
Only 10% of cooperatives, 30% farmers and 50% companies comply with

survival rate standard, FCR was complied by 70% farmers, 86.67%
cooperatives and 100% companies. (Appendix B1)
The yield average of farmer was 326.14 tones/ha/crop, lower than
cooperatives with 372.78 tones/ha/crop and company with 336.96
tones/ha/crop (P>0.05). That of Anh (2010) was 373.3-416.1 tones/ha/crop.
17


Oanh and Minh (2011) reported the yield was 334.29 tones/ha/crop. The result
was lower than the previous researches; the reasons are the difference of
density, culture time, survival rate and harvest size.
Table 4.6: The culturing time, harvest, yield, survival rate
Items
Farmer
Cooperative
Company
a
a
Culturing time (month)
7.55±0.50
8.02±1.07
7.50±1.4a
Harvesting size (kg/ind)
0.98±0.13a
0.97±0.1a
0.88±0.04a
Survival rate (%)
70.69±12.00a
63.57±10.19b
84.11±3.90c

Yield (ton/ha)
326.14±114.25a 372.78±112.25a
336.96±105.67a
FCR
1.66±0.11a
1.69±0.35a
1.58±0.05a
(Values in the same row with the different letters are significant difference (p<0.05))

4.5 The financial efficiency of farmer, cooperative and company
The total cost are invested for 1 hectare per crop of Pangasius was high
and not significantly different, being 8,151; 9,356 and 8,293 million/ha/crop of
farmer, cooperative and company, respectively. Sinh and Hien (2008)
surveyed that was 4,230 million/ha/crop in inland. According to An and Minh
(2010) that was 5,957.6 million/ha/crop in freshwater culturing area.
Belonging to the research of Oanh and Minh (2011), the total cost was 5,280
million/ha/crop, this result was 8,600 million/ha/crop that was higher than the
previous studies because the feed, seed, drugs and chemical cost,… has
increased.
According to the farmers survey, feed cost was highest which was
accounted 80% of total cost, the cost of seed, drugs and chemicals was
accounted 4.67% and 4.33% respectively. This result was lower than the
research of Oanh and Minh (2011); and Anh (2010) the feed cost was
accounted 84% and 84.4% respectively. According to Chinh (2005), the seed,
drug and chemicals rate was 3.5% and 5%.
The capital sources of 3 groups are from their estate with 100% and state
loan with 100%, however more than 50% of 2 groups of farmer and
cooperative must loan from others in the difficult economy status, while the
state bank did not lent to farmer and interest rate was high (15-19%/year),
therefore the it‟s cost average was 8.67% of total cost.

18